Fitch Says Boeing 737 Max Issue May Have Broad Credit Effects

The transcript discusses Boeing's liquidity and the potential risks to its credit profile due to the grounding of the 737 Max. It highlights that while the aviation sector is accustomed to periods of stress, the current situation is not as severe as past crises. Boeing's strong liquidity and ongoing production support the supply chain, mitigating immediate risks. However, prolonged grounding could impact smaller airlines and the supply chain. The transcript emphasizes the importance of timing and scenario analysis in assessing the situation.

What is the main factor that could put Boeing's credit profile at risk?

• The number of aircraft in production

• The timing of the grounding

• The number of competitors in the market

• The size of Boeing's workforce

How does the current situation with the 737 Max compare to past aviation crises?

• It is more severe than any past crisis

• It is more severe than the post-9/11 period

• It is less severe than the global credit crisis

• It is at the same level as previous crises

What is one mitigating factor that reduces the impact of the 737 Max grounding?

• The increase in global fleet size

• The busy flying season

• Boeing's strong financial profile

• Boeing's decision to stop production

How is Boeing supporting its supply chain during the production of the 737 Max?

• By reducing payment terms

• By halting all production

• By providing loans and equity injections

• By outsourcing production to other companies

What could happen if Boeing's production issues persist for a longer period?

• The supply chain might face significant risks

• Boeing will increase its workforce

• The aviation sector will see a decrease in demand

• Boeing will stop all aircraft production